3.1.5.9 Government failure

• What is government failure?

  • Government failure occurs when government intervention in the economy leads to a misallocation of resources​
• What is Government failure?

  • Government failure occurs when government intervention in the economy leads to a misallocation of resources​
• • The law of unintended consequences means that unexpected events occur due to government intervention​
• What is it called when unexpected consequences occur due to government intervention?

  the law of unintended consequences